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Secrets of International Trading © copyright

How to Develop your Export Market?

Trading House, the term trading house is used to describe all these various types of international traders including those who specialize in importing.

Perhaps the manufacturer is too busy with his home market or too busy manufacturing to export.

Perhaps he/she feels that the possible rewards are not worth the headaches of doing export or he don't want to take on a whole new set of activities.

Whatever the reason, he may decide to engage in what is called Indirect Exporting.

Indirect Exporting

The four basic ways for indirect exporting.

1. An export merchant

2. An export agent

3. A resident foreign buying agent

4. A resident foreign buyer

Recommended reference:
Procedure for Direct Exporting
Checklist for Direct Exporting

Getting in touch with Trading House in a variety of ways: Through trade directories, the Internet, country directories, government commercial representatives abroad, through commercial banks and freight forwarders.

 
 
Secrets of International Trading © copyright
APEC | The EEC | InCoTerms 2000
Exporting Starts Here
Export Marketing Strategies
How to manage Export Promotion?
Documentation for Exporting
How to Draft and Agency Agreement?
Export Trade Barriers & Trade Blocks
Getting Paid for Exporting
Export Insurance
How to Develop an Export Market?
1/9  2/9  3/9  4/9  5/9   7/9   8/9  9/9 
How to Conduct Export Research?
How to calculate Costing for Export?
Hazards of Export Packing & Shipping
Export Shipment and Transportation
4 P's of Export Business Correspondence
About Pallet a transportable platform
 
How to secure hassle-free Import Export  financing and Venture Capital easily from International VC Firms?


Through contacts made at trade shows, International Chamber of Commerce and World Trade Centers or World Wide International Government Consulate and Embassies or www.iccwbo.org 

Trading houses, the term trading house or trading company is used to describe all these various types of international traders including those who specialize in importing as well as exporting.


Export Merchant

Export Merchant, this is a trading company that will buy the local firm's goods outright and assume the risk of being able to resell them profitably abroad.

The export merchant usually specializes in a particular line of products and/or in a particular geographical market area. Sometime it sells the goods with the original supplier's labels or puts its own label.


Export Agent

An export agent, is a trading company that acts for local manufacturers, usually representing a number of non-competing manufacturers.

In return for obtaining export order from abroad, the export agent receives a commission.

Unlike the export merchant, the agent does not become the owner of the goods and therefore does not assume the risk of not being able to sell them abroad.

An export agent is usually retained on one or two years renewable basis with an export agency agreement.

The function of the export agent is to appraise the export potential of the local manufacturer's products, advertise them abroad, look for foreign buyers, obtain export orders, and advise on, or arrange for, the documentation, shipping and insurance once a sale has been made.

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"...manufacturer can benefit from export know-how and personal contacts from the export merchant or agent..."
Direct Exporting
Resident Foreign Buyer
Resident Foreign Buying Agent
Advantage of Indirect Exporting
Disadvantage of Indirect Export

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